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Oracle ERP Cloud Implementation
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DESCRIPTION: Authorization to procure Oracle Cloud ERP & Implementation |
AGENDA NO: 23-045 |
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ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
recommendation
Authorize the Chief Executive Officer to negotiate and approve a change order for the contract with Mythics, Inc., which utilizes an existing contract and procurement with the State of Louisiana. The amount and duration of the implementation extended to September 2023 and requires a change order not to exceed $1,700,687.12.
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ISSUE/BACKGROUND:
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Mythics, Inc., was procured as a State Contract vendor via State contract 4400022095, Oracle Products and Services, is in accordance with the OMNIA Partners, Public Sector Master Agreement Number 180233-002 by and between Maricopa County, AZ and Mythics, Inc.
At the May 2022 Board meeting, RTA staff recommended the Board enter into agreement with Mythics, Inc. to implement Oracle ERP Cloud (Board Item #22-070). The award was provided, and contract signed on 5/31/2022. The original project timeline foresaw contract expiration by April 2023 for an amount of $4,188,076.00.
Furthermore, RTA had in place multiple software across departments providing the same or similar functions. Some of this software, such as JD Edwards, provide essential accounting functions that was over 30 years old. Other software tools are much more modern but have not been able to integrate with the financial system resulting in significant duplication of effort and manual data entry. This project allows departments the ability evaluate their tools and either eliminate or integrate into the Oracle Cloud platform; however, Oracle Cloud is not a standard off-the-shelf product. Rather, it is a highly customizable kit-of-parts which requires a lot of collaboration between RTA staff and consultants to deliver the much-needed product and transformations.
The original scope had to make several assumptions as to the state of these many software systems and the requirements for RTA business practices. Working together RTA subject matter experts and Mythics Team leads identified:
- The need for expanded service delivery within individual modules,
- Inability of some Oracle modules to meet RTA business practice requirements,
- Data conversion requirements,
- Needs for department specific software integrations.
In addition, there were many other significant initiatives and activities, such as New Links implementation, annual budget preparations, NTD annual reporting etc. that restricted the availability of key RTA staff to work the consult team to develop the new system. Combined with staff shortages in some critical areas, the result was a much more constrained staff time that estimated in the original project timeline
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DISCUSSION:
This change order is to extend the Oracle ERP Cloud Implementation project by six (6) additional months with a refined, optimized scope to ensure Oracle is fully implemented and in place in a way that maximized value for the RTA. The approval of this change order will ensure department specific requirements and integrations are vetted and built-in the platform.
Determining Solution Requirements
Movement to Oracle Cloud ERP is to replace the existing JD Edwards, RTA’s main financial system that is now over 30 years old and unable to integrate with other systems. The migration and implementation involved a needs assessment of current policies/procedures and software which informed best practice, procedures, and training. Moving to the Cloud Enterprise Resource Planning (ERP) and developing clear roles for all software functions allows RTA to:
(1) increase productivity and reduce redundancy, errors and manual entry,
(2) streamline business policies and procedures,
(3) increased user knowledgebase by minimizing information silos
(4) identify and maintain system of record for key data sources (such as employee records) for use across platforms used by all departments,
(5) update to timely software.
RTA staff worked with Mythics to value engineering the remaining work and final solution requirements to better fit the organization’s needs and focus on more integrations with existing software and less developing of Oracle modules. This effort resulted in saving an estimated $750,000 if this change order were only extending the timeline.
Details of Change:
Scope of Work (SOW)
§ Modules
o Added: Projects, Grants
o Extended:
§ HCM & ERP increased complexity in user defined reports
§ HCM - added union absence management, benefit plans extended from 5 to 17 plans, added employee self-service, expanded payroll from 10 to 300 plus elements
§ ERP - General Ledger to include Budgets, added purchasing punch out, AR invoice modifications added
o Removed: EPM & Supply Chain Management
§ Interfaces Added
o Single Sign On
o NeoGov (Human Resources software for recruiting, onboarding, talent management and learn management)
o Ron Turley (Maintenance software for fleet and facilities work orders and inventory management)
o Benefits
o Time Keeping Dispatch (TKD)
o Leave Usage (union)
Timeline: Original go-live of 3/31/23 extended to 8/31/23 with final extension concluding 9/30/23
FINANCIAL IMPACT:
This contract will be charged to the accounts established for Oracle ERP which is part of the approved 2023 budget. The projected contract extension through September 2023 includes:
(1) Mythics, Inc., labor estimate of $1,569,027.12 and a travel estimate of $35,000.00.
(2) Oracle Integration Cloud Service (OIC) annual costs of $5,760.00.
(3) Known2U integration monthly cost of $1,350.00 for an annual fee of $15,900.00.
(4) NeoGov fee for one-time employee record update $10,000.00.
(5) Contingency of $50,000.00.
Total Change Order expenditure is not to exceed: $1,700,687.12 (account 1.1117).
This change order will be absorbed into the existing approved 2023 Capital Budget. Due to delays and other modifications to existing and planned projects, the project progressed from the original estimated timelines during budget planning in Summer of 2023, there will be no net increase to the total budgeted amount of local funds in the capital budget - a total of $14,379,957.00.
The revised contract amount is not to exceed: $5,888,796.12.
NEXT STEPS:
Upon RTA Board Approval, staff will work with the CEO to execute change order to Mythics, Inc.
ATTACHMENTS:
(1) RTA Resolution for Oracle ERP Cloud Implementation.
(2) 81219 RTA Oracle Implementation CR01 Project Extension v5
(3) SoLA Oracle Products and Services Omnia Partners PA-signed-Final
(4) State Contract - Oracle Cloud ERP & Implementation
(5) CDX Large Volume Pricing
(6) CDX Per File Pricing
(7) Known2U Email Quoted Price
(8) OIC Email
(9) New Orleans RTA - UCAF - OIC - 2.9. 23
(10) New Orleans regional Transit Authority (LA) - NEOGOV API & One Time Imports Quote
Prepared By: Doris O’Sullivan
Title: Project Manager of Information Technology III
Reviewed By: Dwight Norton
Title: Chief of Infrastructure & Planning
Reviewed By: Gizelle Banks
Title: Chief Financial Officer
4/5/2023
Lona Edwards Hankins Date
Chief Executive Officer